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Frustrated GM investors ask what more Mary Barra can do

DETROIT — General Motors Co Chief Executive Mary Barra has transformed the No. 1 U.S. automaker in her almost five years in charge, but that is still not enough to satisfy investors. Ahead of third-quarter results due on Oct. 31, GM shares are trading about 6 percent below the $33 per share price at which they launched in 2010 in a post-bankruptcy initial public offering. The Detroit carmaker's stock is down 22 percent since Barra took over in January 2014. After hitting an all-time high of $46.48 on Oct. 24, 2017, the shares have declined 33 percent. In the same period, the Standard & Poor's 500 index has climbed 7.8 percent. Several shareholders contacted by Reuters said GM could face a third major action by activist shareholders in less than four years if the share price does not improve. "I've been expecting it," said John Levin, chairman of Levin Capital Strategies. "It just seems a tempting morsel to somebody." Levin's firm owns more than seven million GM shares. Barra has guided the company through the settlement of a federal criminal probe of a mishandled safety recall, sold off money-losing European operations, and returned $25 billion to shareholders through dividends and stock buybacks from 2012 through 2017. GM declined to comment for this story, but the company's executives privately express frustration with the market's reluctance to see it as anything more than a manufacturer tied mainly to auto market sales cycles. GM's profitable North American truck and SUV business and its money-making China operations are valued at just $14 billion, excluding the value of GM's stake in its $14.6 billion Cruise automated vehicle business and its cash reserves from its $44 billion market capitalization. The recent slump in the Chinese market, GM's largest, and plateauing U.S. demand are ratcheting up the pressure. GM is one of the few global automakers without a founding family or a government to serve as a bulwark against corporate raiders. In 2015, a group led by investor Harry Wilson pressed GM to launch a $5 billion share buyback, and commit to what is now an $18 billion ceiling on the level of cash the company would hold. In 2017, GM fended off a call by hedge fund manager David Einhorn to split its common stock shares into two classes. Einhorn, whose firm still owned more than 21 million shares at the end of June, declined to comment about GM's stock price. Other investors said there were no clear alternatives to Barra's approach.

NHTSA upgrades probe into 1.7 million GM vehicles over wiper failures

WASHINGTON — The U.S. National Highway Traffic Safety Administration (NHTSA) said Tuesday it is upgrading an investigation into 1.7 million General Motors vehicles for windshield wiper failures. The auto safety agency opened the probe in November 2018 to see if GM needed to expand a 2016 recall of 2013 model year Chevrolet Equinox and GMC Terrain SUVs to cover additional vehicles. The engineering analysis probe covers 2010-2012 and 2014-2016 Equinox and Terrain vehicles. NHTSA could demand a recall after it completes the probe. NHTSA said it has reviewed 1,900 complaints and reports related to the issue in the 1.7 million vehicles. NHTSA said it has seen elevated failure rates in the 1.7 million vehicles, even though GM said the recalled vehicles have "double the warranty rate and five times the complaint rate." GM said it will "fully cooperate to support their investigation. We do not believe these windshield washer systems are defective." The wiper failures that prompted the 2016 recall were attributed to water and debris intrusion into the windshield wiper assembly ball joints, leading to excessive wear and eventual detachment of the ball joint. GM said it was installing an improved windshield wiper motor and transmission assembly and relocating a drain hole at the base of the windshield. Related Video:

GM is training more first responders for EV emergencies in the U.S. and Canada

GM is training more first responders to be able to handle emergencies involving electric vehicles. The automaker is "significantly expanding" its EV First Responder Training program in the United States and Canada as electric vehicle sales continue to grow. Its initiative will primarily focus on training firefighters and equipping them with the necessary knowledge about full electric vehicle technologies. GM says it's hoping to dispel misconceptions when it comes to handling EVs in emergency situations. One of those misconceptions is that water is dangerous around EV batteries — turns out the recommended way to put out lithium-ion battery fires is by using copious amounts of water.  Andrew Klock, a senior manager of education and development at the National Fire Protection Association (NFPA), said: "The best way for the public and private vehicle fleet owners to rapidly adopt EVs is to train firefighters and emergency responders on how to handle incidents involving battery powered vehicles. The fire service has had more than 100 years to gain the knowledge needed to respond to internal combustion engine fires, and it is critical that they are now educated on EV safety." The NFPA held trainings of its own that had benefited 300,000 first responders, but it believes more than 800,000 members of the community still need further training.   GM previously piloted the program in southeast Michigan, but now it's conducting training events across Michigan and in Fort Worth, Texas, as well. Later this summer, it's bringing the program to metro New York City and Southern California. Participants will have to attend four-hour sessions, with up to two per day, held in various venues, such as fire houses and dealerships. Interested first and second responders can register through the program's dedicated website and earn a certificate from the Illinois Fire Service Institute if they score higher than 70 percent on the learning assessment by the end of their training.  The automaker already has a few EV models on the market, including the Chevy Bolts, the GMC Hummer EV and the Cadillac Lyriq. It has huge electrification plans for the future, though, and training responders could help make potential customers more receptive to the idea of switching to electric vehicles. GM aims to launch 30 EV models by 2025 and to exclusively sell EVs ten years after that. Related video: Green Cadillac Chevrolet GM GMC Safety Electric